Taking Security Over A BVI Limited Partnership Interest – Issues For Lenders

We note that interest is growing in the new form of British Virgin Islands limited partnership that can be registered under the Limited Partnership Act 2017 (the "Act"). In the context of banking and finance transactions, there is increasing awareness among lenders of the ability to take security over limited partnership interests. Taking security over limited partnership interests can be useful in a variety of finance transactions, whether the security is being granted by the borrower or a third party. The Act contains a clear and simple framework that facilitates this. While not an exhaustive commentary, this article seeks to highlight some of the key issues for lenders and their counsel to be aware of.